Federal Update: David Bartnicki Bulletin

From the 5/3/13 Bartnicki Bulletin:

 

Verification

I keep getting questions about what kinds of alternative documents can students (and parents) provide if they are unable to use the IRS DRT or have their IRS transcript processed at this time for  2013-2014.  Please note that the exceptions noted in the November 2, 2012 electronic announcement allowing signed paper returns and signed IRS documents (IRS screen shots or IRS letters) showing an inability to obtain a transcript is only for the 2012-2013 award year.  At this time there are no special exceptions for 2013-2014 beyond those noted for amended returns, identity theft, Puerto Rican returns, foreign returns, and various US commonwealths, territories and island nations as outlined in the 13/14 FSA HDBK AVG section, Chapter 4.   This issue was further explained in the March 1, 2013 electronic announcement.

 

COD

 

ED has posted several electronic announcements over the last several months about changes in gaining access to the COD Web site.  ALL COD Web site users must be enrolled for the COD Online Service and have an FSA User ID and password to access the COD Web site beginning on May 5, 2013. After May 5th, COD Web users who have not enrolled for the COD Online Service and do not have a registered FSA User ID will no longer be able to access the COD Web site.  This change is specific to COD Web site access; there is no change to COD batch processing.

For more information and contact data, please see the May 1, 2013 electronic announcement (http://ifap.ed.gov/eannouncements/050113ImmediateReviewRequestedCODWebSiteAccessActionRequiredMay52013.html).

Veterans Retraining Assistance Program (VRAP)

 

I have gotten many questions this year about whether the Veterans Retraining Assistance Program (VRAP) is counted as estimated financial assistance (EFA) or not.  I am happy to report that policy informed the training officers that VRAP is not counted as part of EFA.  It is treated in a similar fashion to other federal educational benefits that are excluded from EFA as mentioned in the 12/13 FSA HDBK Vol. 3, Chapter 7, appendix A.

 

Sequestration and TIV funds

 

On April 26, 2013, the Department posted an updated electronic announcement providing revised guidance on changes in the award reduction percentages for TEACH and Iraq-Afghanistan Service Grants (http://ifap.ed.gov/eannouncements/042613UpdatedChangesInSequestReqReductions.html).

 

Any Iraq-Afghanistan Service Grant award where the first disbursement is made after March 1, 2013 (including both 2012-2013 and 2013-2014 awards) must be reduced by 10.0 percent from the award amount for which the student would otherwise have been eligible to receive.  In our earlier notification we had said that the reduction would be 37.8 percent.

Any TEACH Grant award where the first disbursement is made after March 1, 2013 (including both 2012-2013 and 2013-2014 awards) must be reduced by 7.1 percent from the award amount for which the student would otherwise have been eligible to receive.  In our earlier notification we had said that the reduction would be 12.6 percent.

I really want to bring this to your attention since I know that many of you may have attended training prior to April 26 that talked about the old reduction percentages. If your institution disbursed funds to students from these programs using the earlier reduction percentages, you must disburse the additional funds to the affected students and update any previously reported information to COD.

2014-2015 FAFSA Parental Information Collection

 

I have already started getting a few questions around our recent DCL GEN-13-12 which states that beginning with the 2014-2015 FAFSA, dependent students will be required to include on the FAFSA income and other information from the dependent student’s legal parents (biological or adoptive) regardless of the parents’ marital status or gender, if those parents live together.

 

I encourage all schools to read the DCL carefully.  It contains a lot of good information explaining the process, justification and background.  GEN-13-12 also contains a comparison form between 13/14 and 14/15 and a series of 18 Q & As.  Stay tuned to IFAP for more information on this topic and on the 2014-2015 FAFSA in general in the coming weeks and months.

 

150% Subsidized Direct Loan Limitations

 

Probably the most asked question I am getting lately is around the upcoming limitations for subsidized Direct Loans for new borrowers starting July 1, 2013.  The best I can tell you is to please stay tuned to IFAP for upcoming guidance from ED.  In the very near future, ED will be posting guidance to assist schools with implementing this new requirement.  I know that ED will do everything possible to provide timely guidance, assistance and training as we work together to implement this new rule.

Submitted by: Michelle Upchurch